What Should the SEC Do with High Frequency Traders?
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Dallas Mavericks owner Mark Cuban claims high-frequency traders, or HFT's, are one of the main reasons for the extreme volatility recently and, in turn, one of the major factors corrupting the market, the New York Post said Thursday.
Cuban believes by taxing the method of trading, overall market volatility would be lowered. He states while some investors will be crying “bloody murder,” it will help transform the market back into its sole purpose: “a source of capital for growing business.”
Cuban believes a $0.25 per share tax would terminate short-term traders and computer-driven traders who buy and sell within milliseconds. This would mean investors would need to see a gain of at least $0.25 per share just too breakeven, not including income taxes and trading fees.
Bart Chilton, a commissioner with the Commodities Futures Trading Commission, suggests all HFT’s be required to register with regulators. Chilton calls HFT’s “Cheetahs” for their quick movements within the market; many disapprove of the name due to how closely it sounds like cheaters.
Whitney Tilson, who the New York Post calls a hedge fund guru, wants to see a more sever change made. He insists a structural change is needed and notes all trades should be shown for at least one second.
Cuban believes by taxing the method of trading, overall market volatility would be lowered. He states while some investors will be crying “bloody murder,” it will help transform the market back into its sole purpose: “a source of capital for growing business.”
Cuban believes a $0.25 per share tax would terminate short-term traders and computer-driven traders who buy and sell within milliseconds. This would mean investors would need to see a gain of at least $0.25 per share just too breakeven, not including income taxes and trading fees.
Bart Chilton, a commissioner with the Commodities Futures Trading Commission, suggests all HFT’s be required to register with regulators. Chilton calls HFT’s “Cheetahs” for their quick movements within the market; many disapprove of the name due to how closely it sounds like cheaters.
Whitney Tilson, who the New York Post calls a hedge fund guru, wants to see a more sever change made. He insists a structural change is needed and notes all trades should be shown for at least one second.
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